The CFO affirmed that NovaGroup and Chairman of the Board of Directors Bui Thanh Nhon did not shy away and returned to directly run Novaland.
On the afternoon of April 25, Novaland Group held its annual general meeting of shareholders. Recently, NovaGroup has continuously registered to sell a large amount of Novaland (NVL) shares. For example, on April 16, NovaGroup registered to sell 4.4 million NVL shares. A shareholder asked the question, is this a move to “escape by NovaGroup and Mr. Bui Thanh Nhon from NVL?”.
Responding to this, Mr. Duong Van Bac, Novaland’s Chief Financial Officer, said “there is no escape”.
“NovaGroup and Chairman of the Board of Directors Bui Thanh Nhon have returned to directly run Novaland, true to the message they declared of facing difficulties and challenges, not avoiding them,” Mr. Bac shared.
NovaGroup’s registration to sell a large number of NVL shares, according to this leader, is to support the restructuring of the company’s debts. In particular, a significant amount of shares held by this group were sold as collateral to keep commitments to bondholders in a number of retail bond packages.
Mr. Bui Thanh Nhon – Chairman of the Board of Directors of Novaland, spoke at the annual meeting on the afternoon of April 25. Image: NVL
NVL’s board of directors also informed about debt and bond restructuring activities. Currently, the company’s debt is reduced by about 7,150 billion VND compared to 2022. The company has reached an agreement with bondholders, agreeing on a restructuring plan related to convertible bonds worth 300 million USD. The total value of domestic bond principal payment extension is over VND 9,200 billion.
NVL also completed a bond swap transaction of nearly VND 2,350 billion with equity in a project. In addition, the company agreed to swap bonds and debt values with successful products, about 2,500 billion.
“Basically, Novaland has completed the restructuring of domestic and foreign debts and bonds. The company’s assets are still in balance with its liabilities,” said Mr. Bui Thanh Nhon, Chairman of the Board of Directors (BOD). Novaland said.
In the coming time, the company will continue to restructure its finances and resources. They focus on perfecting the law, changing strategies, and streamlining the apparatus.
The revised Land Law is expected to take effect soon, according to Mr. Nhon, making the market more transparent. “Novaland’s projects with legal problems will be resolved, the real estate market will prosper,” the head of NVL stated.
This year, Novaland targets consolidated revenue of nearly 32,600 billion VND and profit after tax of nearly 1,080 billion, increasing 7 times and doubling respectively over the same period.
Projects that will generate revenue in the coming time are Aqua City, NovaWorld Phan Thiet, NovaWorld Ho Tram and housing projects in Ho Chi Minh City. The total number of delivered products can reach nearly 5,200 units.
Regarding mobilized capital, the company plans to mobilize 16,000 billion VND from financial institutions to develop projects and business activities. Recently, Novaland planned to issue shares worth more than VND 11,700 billion to existing shareholders.
The capital raised will be used by this company to complete unfinished projects to hand over to customers, such as The Grand Manhattan (HCMC), Aqua City (Dong Nai), NovaWorld Phan Thiet (Binh Thuan). …
In addition, NVL also considered and negotiated with a number of potential strategic partners on plans to transfer some projects to restructure debt and improve investment portfolio.
Siddhartha
